pension_credits

CANADA PENSION PLAN

                                                      CREDIT SPLITTING :

Canada Pension credits are based on contributions that each worker makes to the plan. These credits are built up over the years and are used to determine the amount of future canada Pension Credits

The Canada Pension Plan recognizes that both spouses earn Canada Pension Credits equally during the time they live together, even if one of the spouses was not in the paid labor force. the plan allows for the equal splitting of these credits in the event of divorce or separation of legal spouses, or separation of parties of common-law relationships.

Credit splitting takes place if the spouses / common-law partners live together for at least 12 consecutive months and the marriage ended in divorce or annulment. The period of separation must be at least 12 consecutive months and an application must be received from either spouse in order to indicate credit splitting.

                                              COMMON-LAW RELATIONSHIPS :

Spouse is defined as the person who is legally married to the contributor. A common-law partner is the partner who was living with the contributor and who had been living in a marriage like relationship for at least 12 months. This includes same-sex partners.

The period of separation must be at least 12 consecutive months. An application must be made within 4 years of the date of separation in order to initiate credit splitting.

                                                       SURVIVOR BENEFITS :

A survivor's pension is a benefit that is payable to the estate, the surviving spouse / common-law partner and the dependent children of the deceased Canada Pension Plan contributor.

There are 3 different types of survivor pensions:

                      a monthly pension for surviving spouse / common-law partner
                      a monthly benefit for the dependent children of the deceased contributor
                      a lump sum benefit payable to or on behalf of the estate of the deceased

To qualify for survivor benefits, a contributor must have made contributions in at least 3 years.
There are exceptions to this rule if the "contributory period" is longer than 9 years or 10 calender years.

When the surviving spouse is 65years or older, the benefit paid will equal 60% of the retirement pension.
If the surviving spouse is between 45-65 years, the benefit will be a flat rate portion, plus 37.5% of the retirement pension.

What Ontarians Need To Know

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